IN response to its need to cut production numbers, Harley has said that it will close its final assembly plants in York, Pa., and Kansas City, Ma., their powertrain operations in Wauwatosa and Menomonee Falls, Wi. and their Tomahawk operations in Tomahawk, Wi. for the week of Nov. 26.

Employees will not be paid during the lay-off, although healthcare benefits will be continuous and all employees will be re-called immediately after the shut-down. Union bosses are estimating that some 1500 employees will be affected in Wisconsin alone.

The move represents Harley’s response to its need to cut ‘07 production numbers following its reduced sales forecasts for the year.

“The company regrets the temporary impact the shipment reduction will have on so many of its employees as well as its dealers, suppliers and customers,” Harley said in a statement. “The company believes this solution is the best option for balancing the needs of our stakeholders while doing what’s right for the long-term prosperity of the company.”

A September 7th announcement stated that Harley was lowering its sales projections for the third quarter and second half of 2007. The company now says its ‘07 motorcycle sales will be lower than last year with third quarter “shipments” now being forecast down to between 86,000 and 88,000 motorcycles.

Chief Executive Officer Jim Ziemer says that the company “no longer expects worldwide dealer sales to increase during the second half of 2007.” Coupled with a decline in unit sales in the first half of 2007, unit shipments for the year as a whole are also now expected to be lower than were recorded in 2006.

The firm is now forecasting a “modest” decline in revenue for 2007, the first year in which they’ll have seen such a revenue since the 1980s, and earnings per share are expected to be down between 4 and 6 percent.

Harley have also said “some sites will take additional steps to achieve their production reductions,” but the company did not state what the actions would be.

www.harley-davidson.com